Fidelity National Information Services Inc at Wolfe Research FinTech Forum Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Darrin Peller - Wolfe Research - Analyst : Maybe we'll just start off just to look back at '24. Maybe just touch on what are some of the things you're most proud of in terms of the accomplishments of the company from last year. Obviously, it was a year after a big transition was going on, right, with Worldpay and with material capital return, but also realigning the business under new leadership. And so maybe just give us a recap a little bit of the year and how you exited the year, and we'll go into going -- looking forward.

Question: Darrin Peller - Wolfe Research - Analyst : Maybe just going back for a moment to fourth quarter. If you could just revisit it and make sure investors understood whatever you wanted them to really take away from the quarter, it would be a good place to start.

Question: Darrin Peller - Wolfe Research - Analyst : Right. So look, I mean, I guess when we take into account some of these items that did affect the quarter, and it kind of brings me to the next question, I mean you guided for overall company-wide revenue growth of 4.6% to 5.2% for the year. As you said, it should be a recurring stable revenue story, right? And we saw some fits and starts with onetime items. But looking at the year ahead of us, you also guided EPS growth of 9% to 11%, which is pretty similar to your Investor Day targets. If you could just talk about the puts and takes in the year ahead, the reason for the conviction in the acceleration from first quarter guide of around 3% to that midpoint closer to 5% and really, especially in the banking segment, what informs that acceleration and the conviction in it? Do you still have as much conviction now as you did when you gave it? And then just what informs the bottom end of the range versus the top-end outcomes? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 12, 2025 / 4:30PM, FIS.N - Fidelity National Information Services Inc at Wolfe Research FinTech Forum

Question: Darrin Peller - Wolfe Research - Analyst : Okay. So your conviction is high. I mean, we're in March now.

Question: Darrin Peller - Wolfe Research - Analyst : Okay. Because where we are in March now and seeing what we saw in ACV. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 12, 2025 / 4:30PM, FIS.N - Fidelity National Information Services Inc at Wolfe Research FinTech Forum

Question: Darrin Peller - Wolfe Research - Analyst : So the step function in your embedded guide from Q1, especially in the banking segment, right, it probably has a lot to do with some of these nature -- some of these onetime item events happening, whether it's comping term fees and license fees, run over dis-synergies of the Worldpay transition and whatnot. But help us understand again, I mean, you're going to -- you're guiding to, I think it's 1% growth in banking overall in Q1, and then you have it accelerating as the year progresses because for the full year, your guide is 3% to 4% or so for the banking segment, right?

Question: Darrin Peller - Wolfe Research - Analyst : Q1 '24.

Question: Darrin Peller - Wolfe Research - Analyst : So when we consider those items, the 200 bps that you're going to basically anniversary, right, through one quarter, combined with some of the other nuances we just talked about, you end up with that alone being -- assuming implementations go effective, right, being back to 3%, 4% for second quarter, and it sounds like you're still seeing conviction in that. I think that brings me to the question of your visibility on the implementations, right? I mean, again, you said yourself, it was about 100 basis point impact last quarter, right? And so -- what are you seeing? I mean there's been delays. I mean, what are your -- what's causing those delays first? What happened? Was it the customer that was taking longer? Was it you guys? And where are we on those implementations now?

Question: Darrin Peller - Wolfe Research - Analyst : That's great to hear, James. Let's just shift for a little bit to the community banking side of things. I mean you've noted, obviously, a refocusing on core operations. You've seen some tangible gains on that front. I know you've talked about digital sales having nearly doubled and the number of core banking deals signed on track above '23 levels and other prior levels for that matter. So just how are you guys thinking of leveraging this momentum to drive future growth? It's an area that I know you've had fits and starts on over the last few years, right? So it seems like we're really investing back into it again. And what's helping you win share in that community and regional bank segment again?

Question: Darrin Peller - Wolfe Research - Analyst : Great. That's really helpful. From a demand and from a -- it sounds like you said before, demand for banking in terms of technology upgrades and probably digitization is still as high as or any changes or what you're seeing out there?

Question: Darrin Peller - Wolfe Research - Analyst : Very good. All right. When we go to the Capital Markets segment, you mentioned it earlier, you were getting some questions. But again, I mean, it had another strong year last year and probably begets some of the questions you're getting of the kind of growth you've been already seeing in sustainability around that. So again, you delivered 7% revenue growth with adjusted EBITDA margins also expanding, right, over 70 basis points. Segment was strong. It had license sales. It had cost savings, operating leverage. It was really -- it just seemed like a big success overall, even relative to your own Investor Day expectations. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 12, 2025 / 4:30PM, FIS.N - Fidelity National Information Services Inc at Wolfe Research FinTech Forum So just maybe revisit that again. What are the biggest opportunities for the segment? Heading into '25, your guidance calls for the segment to be, I think you said 6.5% to 7%, right? So let's just talk about what gives you the confidence in maintaining this relatively healthy pace for what could be considered often a natural recurring revenue story, but not necessarily always the fastest growing. But for you guys, it's been showing some really good traction.

Question: Darrin Peller - Wolfe Research - Analyst : Yes, I don't disagree. All right. So it sounds like from a growth standpoint, things are going in the right direction, and we'll have to see some of the evidence as some of these onetime items kind of go behind us and you'll see the real growth. But the other question we had a lot about was really free cash flow, right? I mean you ended up at 77% conversion in '24. And I know you're guiding now to, let's call it, a midpoint of 83.5% for this year. So it's an improvement. But I guess we could just touch on, number one, the key drivers of that improvement. Any risks to achieving those targets? Maybe just a follow-up on FIS. You also increased your CapEx level to 9%. So what's really driving that? And obviously, supplier costs are a piece of it and vendor costs. But just help us understand the dynamic there and the conviction of the improvement in free cash conversion. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 12, 2025 / 4:30PM, FIS.N - Fidelity National Information Services Inc at Wolfe Research FinTech Forum

Question: Darrin Peller - Wolfe Research - Analyst : Just from a leverage on revenue standpoint.

Question: Darrin Peller - Wolfe Research - Analyst : Right. So it should continue to get better. I know you said in '26, it keeps getting better. I think I even asked the question on your last earnings call.

Question: Darrin Peller - Wolfe Research - Analyst : That's great to hear. You mentioned Worldpay and the restructuring still. So maybe just touch on that for a moment. I mean, you obviously -- you're still going through some adjustment to it, but your goal is to obviously have relationships on the revenue side between the two of you still going forward. So maybe just touch on how that's been playing out versus your initial expectation in terms of revenue share models, areas you work together still. And if you could start with that, that would be helpful.

Question: Darrin Peller - Wolfe Research - Analyst : So the revenue doesn't go away. It just --

Question: Darrin Peller - Wolfe Research - Analyst : And what about the TSAs? I mean that's something that was a benefit from a margin [expansion] standpoint. And so where does that shake out now over the next couple of years? And what are your plans if there's any need to offset the implications of that as it runs off?

Question: Darrin Peller - Wolfe Research - Analyst : So that's all embedded in your margin targets.

Question: Darrin Peller - Wolfe Research - Analyst : Can we visit -- revisit your capital allocation strategy at the moment? I mean, you obviously still have a decent level for this year. I think you said, what, $1.2 billion, if I remember correctly, from a buyback standpoint.

Question: Darrin Peller - Wolfe Research - Analyst : And then you also still anticipate some M&A ahead, right? You've done a couple of deals, but still not as much as maybe we thought you would have done so far. But help us understand where you are in that journey on a capital allocation standpoint between both.

Question: Darrin Peller - Wolfe Research - Analyst : We're going to turn it to the audience in a minute for questions. But we've gotten questions recently about the competitive landscape and pricing and whether or not you guys have been aggressive on pricing in cases to be able to cross-sell or other companies are trying to go after different REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 12, 2025 / 4:30PM, FIS.N - Fidelity National Information Services Inc at Wolfe Research FinTech Forum markets, up -- more upmarket or even vice versa, you having success down market. Just give a quick comment on what you're seeing out there relative to what you've seen maybe a year ago.

Question: Darrin Peller - Wolfe Research - Analyst : In terms of pricing contribution to your growth is what you are saying?

Question: Darrin Peller - Wolfe Research - Analyst : Great. Where do you -- I mean, just where do you want this year to end for you to say that you've succeeded on your goals and this was the year you wanted to achieve?

Question: Darrin Peller - Wolfe Research - Analyst : Great. All right, guys, questions? Any questions, guys?

Question: Darrin Peller - Wolfe Research - Analyst : Yes. No, I think we're about out of time anyway. So James, thank you so much for joining us and for your presentation.